Exam 26: Internal and Governmental Financial Auditing and Operational Auditing

Internal Auditors are expected to add value to the organization through improved operational effectiveness. In addition, their responsibilities include all the following except:

Independence is a fundamental ethical principle for internal auditors.

What distinguishes internal control evaluation and testing for financial and operational auditing?

The professional organization which is responsible for providing guidance for internal auditors is the:

The international standards for the professional practice of internal auditing include which two categories of standards?

External auditors typically consider internal auditors effective if they meet three criteria. What are these criteria?

Which of the following groups could not be involved in an operational audit?

Efficiency refers to the degree to which costs are reduced without changing effectiveness. The auditor's opinion as to the appropriateness and sufficiency of evidence in forming an opinion on the financial statements.

Operational audits are primarily geared towards improving a company's operational efficiency and effectiveness.

Internal auditing standards are included in the Red Book.

Program audits are primarily focused on inefficient uses of federal funds in sponsored programs.

Which of the following is not one of the major differences between financial and operational auditing?

What are several similarities between internal and external auditors?

An audit designed to provide reasonable assurance of detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a material and direct effect on the financial statements would be called a(n):

One disadvantage of functional auditing is the failure to evaluate interrelated functions.

Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits.

Discuss three major differences between operational and financial auditing.

The Single Audit Act requires that an audit be conducted for recipients who receive total federal funds in any fiscal year of:

Discuss each of the three phases of an operational audit.

Effectiveness is concerned with whether defined goals are achieved, whereas efficiency is concerned with whether the goals are achieved with a minimum use of resources.